First Northwest Bancorp(US:FNWB)2025-01-29 16:20Financial Performance - First Northwest Bancorp reported a net loss of $2.8 million for Q4 2024, compared to a net loss of $2.0 million in Q3 2024 and a net loss of $5.5 million in Q4 2023, with a basic and diluted loss per share of $0.32[2]. - The company reported a net income of $2,500 thousand for the fourth quarter of 2024, compared to $3,000 thousand in the previous quarter, indicating a decrease of 16.7%[35]. - The net loss for the quarter was $2,810,000, compared to a net income of $2,286,000 in the same quarter last year, marking a significant shift in profitability[36]. - Basic and diluted loss per common share was $(0.32) for the quarter, compared to earnings of $0.26 per share in the same quarter last year[36]. - Adjusted PPNR for the quarter was $1,204,000, while for the year ended December 31, 2024, it was $3,498,000, down from $9,555,000 in 2023[43]. Revenue and Expenses - Total revenue for Q4 2024 was $15.4 million, a decrease from $16.1 million in Q4 2023, while total noninterest expense decreased to $14.2 million[10]. - Total noninterest income for the quarter was $1,300,000, a decrease from $12,614,000 in the same quarter last year, reflecting a decline of 89.7%[36]. - Total noninterest expense for the quarter was $14,233,000, down from $16,990,000 in the same quarter last year, a reduction of 10.3%[36]. Credit Losses and Allowances - The provision for credit losses on loans was $3.8 million in Q4 2024, up from $3.1 million in Q3 2024 and $1.2 million in Q4 2023, primarily due to charge-offs of six commercial business loans[6]. - The provision for credit losses was $3.76 million for the quarter ended December 31, 2024, compared to $3.08 million in the previous quarter[18]. - The provision for credit losses for the quarter was $3,655,000, an increase from $970,000 in the same quarter last year[43]. Asset Quality and Loans - Nonperforming loans totaled $30.5 million at December 31, 2024, with the allowance for credit losses to nonperforming loans ratio decreasing to 67%[12]. - Total net loans decreased by $39.2 million, or 2.3%, to $1.68 billion at December 31, 2024, compared to $1.71 billion at September 30, 2024[18]. - Total loans amounted to $1,695,823 million as of December 31, 2024, a decrease from $1,734,807 million on September 30, 2024, representing a decline of 2.2%[38]. - Total construction and land loans decreased to $78,110 million as of December 31, 2024, from $95,709 million on September 30, 2024, representing a decline of 18.4%[38]. - Total commercial business loans decreased to $151,493 million as of December 31, 2024, down from $155,327 million on September 30, 2024, a decrease of 2.4%[38]. Deposits and Equity - Total deposits decreased by $23.6 million to $1.69 billion at December 31, 2024, compared to $1.71 billion at September 30, 2024, but increased by $11.1 million, or 0.7%, compared to $1.68 billion one year ago[19]. - Total shareholders' equity decreased to $153.9 million at December 31, 2024, compared to $160.8 million three months earlier[20]. - Shareholders' equity decreased to $153,882 thousand as of December 31, 2024, down from $160,789 thousand on September 30, 2024, representing a decline of 4.3%[34]. Interest Income and Expenses - Total interest income for the quarter ended December 31, 2024, was $28,197,000, compared to $26,309,000 for the same quarter last year, representing a year-over-year increase of 7.2%[36]. - Net interest income after provision for credit losses was $10,482,000 for the quarter ended December 31, 2024, down from $13,043,000 in the same quarter last year, a decrease of 19.6%[36]. - Interest expense on deposits increased to $11,175,000 for the quarter, up from $8,758,000 in the same quarter last year, an increase of 27.5%[36]. - The company reported a total interest expense of $14,060,000 for the quarter, compared to $12,114,000 in the same quarter last year, reflecting a year-over-year increase of 15.9%[36]. Strategic Focus and Future Plans - The company aims to improve asset quality and profitability while focusing on growing core commercial and retail customer relationships in 2025[4]. - The company plans to continue focusing on strategic partnerships to enhance its financial services offerings, including digital payments and marketplace lending[29]. - The company has been recognized for its community leadership, winning multiple awards including Best Bank and Best Lender in Clallam County[24].